Which is the correct sequence of the following steps in the accounting cycle?
A)Prepare journal entries,analyze transactions,prepare adjusted trial balance.
B)Prepare adjusted trial balance,prepare closing entries,and prepare financial statements.
C)Post adjusting journal entries,prepare adjusted trial balance,prepare financial statements.
D)Post closing entries,prepare financial statements,prepare adjusted trial balance.

Question

Quizplus · Accepted Answer

The correct sequence of the accounting cycle is to first analyze transactions, then prepare journal entries, post adjusting journal entries, prepare an adjusted trial balance, prepare financial statements, and finally post closing entries. Option C correctly follows this sequence as it includes posting adjusting journal entries, preparing an adjusted trial balance, and then preparing financial statements. Option B includes preparing a closing entry before preparing financial statements, which is out of sequence, and option D includes posting closing entries before preparing financial statements and an adjusted trial balance, which is also out of sequence. Option A includes preparing journal entries before analyzing transactions, which is incorrect.

Which Is the Correct Sequence of the Following Steps in the Accounting